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Numeric Power to Sell UPS Biz to Legrand Outfit for Rs 837 Cr

  • Numeric Power Systems Ltd has decided to sell its UPS business with its brand, trademark and entire IP rights to an Indian subsidiary of Legrand of France, whose electrical products are already available in the country, for about Rs 837 crore.However, NPSL, a dominant player in the Indian UPS market, will retain the other activities like green energy - solar and wind power, iron and alloy foundry production, LED lighting, etc., in India. The company will also sell its Singapore subsidiary to a Legrand affiliate.For Numeric Power, UPS has been the core business, contributing over 90 per cent of the company's Rs 450-crore turnover.

Special dividend

  • At a press conference held in Chennai, the Managing Director, Mr R. Chellappan, said the company will extend a 'special' dividend to its shareholders and would focus more on its solar business.On both the stock exchanges, the scrip hit the upper circuit after news about the sale of UPS business was announced, on expectation that an open offer may be made by the new owners.In a communication to the stock exchanges, NPSL said its board of directors approved on February 9 sale of the UPS business of the company to Indo Asian Electric Pvt Ltd, a wholly owned subsidiary of Legrand France SA, for Rs 837.08 crore.
  • Th sale consideration is for the Indian UPS business (including non-compete) and excludes the sale of 100 per cent subsidiary Numeric Lanka Technologies Private Ltd, the company said.The board also approved the sale of the UPS business undertaking of Numeric Power System Pte. Ltd (100 per cent subsidiary), to an affiliate in Singapore of Legrand France S.A., for an aggregate $4,500,000.To give effect to this transaction, the parties concerned have entered into a Business Transfer Agreement. The company will continue to carry on the other activities like green energy - solar and wind power, iron and alloy foundry production, LED lighting, etc.
  • The company has eight manufacturing facilities located at Chennai, Puducherry, Parwanoo and Colombo.During the quarter ended December 31, 2011, NPSL had a turnover of Rs 136.9 crore and the net profit was Rs 7.20 crore. The EPS for the quarter was Rs 7.13. For the full year 2010-11, NPSL had a turnover of Rs 510.37 crore and the net profit was Rs 40.21 crore.The promoters of NPSL had a 53.39 per cent stake in the equity of the company which was Rs 10.10 crore. The public shareholding was 36.61 per cent.The news about UPS business sale sent the stock price zooming on the BSE to Rs 280.25, up by Rs 46.70 or 20 per cent. While the number of shares traded was 6,132, there were buyers for 1.30 lakh shares with no sellers.On the NSE, the trading in the share was frozen at Rs 281.50, a gain of Rs 46.90 or 19.99 per cent. While 15,600 shares were traded, there were buyers for 1.59 lakh shares with no sellers.

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